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Many cruise lines are trading below the book value of equity. Carnival is one example. Oil probably won’t stay at $30ish/barrel for long. High quality oil comp
by nknealk 7y ago
Many cruise lines are trading below the book value of equity. Carnival is one example.
Oil probably won’t stay at $30ish/barrel for long. High quality oil companies aren’t likely to go bankrupt (eg. Exxon, Valero, Chevron).
Senior assisted living REITs are in the gutter. VTR comes to mind.
However, if you’re thinking of investing I strongly recommend a broad-market ETF. VOO for the S&P 500 or VTI to go even more broad are good bets.
- PhantomGremlin 7y agoWhy buy VOO if SPY has very liquid options available? Gives you much more flexibility.
- neural_thing 7y agoAhem. The same Carnival that has a quick ratio of about 0.2 and whose revenues are going to decline by 90%? Hard pass. It's equity value is all in cruise ships. Can you imagine those selling at anything close to par right now?
- doingmyting 7y agoAre you expecting that no one will ever set foot on a cruise for the rest of human existence? There obviously will be hardship for them in the near and medium term but everyone knows cruises will return just as strong as they were before the crisis. Might take years but it'll return